LexThe Delhi Sales, Tax on Works Contract Act, 1999
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DELHI GAZETTE : EXTRAORDINARY
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xaftter ©) feet errns Dell, the 15th October, 1999
sre ore fei seers sea No. F, 14/22/95-99/L.A.367.—Tnte following Axi
rachinten, grater, age TM of Legislative Assembly received the assent of the LH
aan “ft softer
aR A TAT FT] FRU aR & Hae Fe athe Governor of Dethi on 14-!0-{999 and is hereby publishes.
aerated fase Frater, gaefufon, for general informatio
aaeh atopy fine at a enti wear a Weer
Capital Teisitory. 6 Delhi on, 10th September, 1999.
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ACT
in the execution of works contract in the National Capit
i aA carenaren faedre SRB at fen Territory of Delhi.” 4 tata ad ae fercurgpasitss | _—_-Be it enacted by the Legislative Assembly of,
Nationat Capital Territory of Delhi in the Fiftieth year
the Republic of ladia as follows :-—
: ; CHAPTER
Presa ge Seg oh far saa sees Protinitniary
ain, fame Hist 20,000)--Ree RAAT ~~ 5 os tte, Extent and Commencement -—(
eet Gen are Prema ee BE arm i -This Act may be called the Deli Sates Tax on Wo
argfir yeh efrw srefevs soot Hsia RT = Contracis’ Act, 1999!”
(2) Itextends to the whole of the National Capi
amt sraria ara me fran erie ‘Tersitory of Delhi.
a a1 io (3) 11 shal} come imo force on such date as
te oh fei mak a a ee may, by notification in the official Gazenes
Fret fag ard ariat arava a, ee are a 2. Definitions—(t) In this Act, unless the coneady
onary aang he gE wearers A al eT otherwise requires ;
ge era} stands war ne were Fan ee aa {a) “assessing aulhorily” means any pel
rant fret fear aon wae Feg-A-e appointed by the Camntissioner of Sates T:
yeaa fee oe, a fee Gar 30 Few ant arate a aT lo perform all or any of the functions
ius aa # A cea a ere wt TA aw az assessing authority under this Act : :
“Commissioner means the person appointed
to be the Cantnissioner of Sales Tax under the
Delii Sales Tax Act, 1975 (43 of 1975);
“vonnautor” means any person who executes a
works contract and includes a sub-contractor ;
“contractee” means any person for whom or for
whose benefit a works coniractis executed,
ie) “The Delisi Sates Tax Act” means the Delhi
Sales Tax Act, 1975 (43 of 1975);
) “gealcr” aneans any person, wha whether for
valuable consideration, commission,
remuneration os otherwise, transfer property in
goods (whether as goods orin some other form)
involved in the execution of works contract and
includes any State Government and the Central
Government which so trausfers such property
in goods, and any sotiety, eltb or association
of persons which so itansiers the’ property in
goods to its members; a
“declared goods” wieats gooils as defifiedia the
Central Sales Tax Act, 1956 (14 of 1956);
“Delhi” means the National Capital “Fecritory
of Delhi; :
“goods” means every kind of movable property
in goods (whether as goods or in some other
fornt) inveved hi the execution of a works
contract; Y :
“Government” means Lt. Governor as defined
under Article 239 AA of Constitution;
"Lt. Governor’! Means LL. Governor of National
Capital Terrirory of Delhi as appointed by ihe
President under Article 239 of the Constitution;
person’. includes an’ individual, or body of
jndividuals whether incorporated or not, a
Hindu undivided family, a-firm,.a local
authority, a corporation, a- company body or
authority owned or set up by, or subject to
acintinistrative contract ef thc, Central
Government or any State Govérnment
(including the’ govertunentofa Union tertitory}
or a cogperative society, whether registered or
not; ‘
“prescribed” means prescribed by niles;
“registered dealer” means a dealer registered
under section 11;
“rules” means rules made under this Act;
“sale” means a transfer of property in goods
(whether as goods or im some ather form)
invoted in the exeentian ofa works cantract in
Delhi; aud the word “sell” with all its
grammatical variation and cognate expersions
shall be contructed accordingly,
DELUI GAZETTE : EXTRAORDINARY. 9
(q) “sule price” in relation to a transfer of property
in goods (whether as goods or in some other
form) involved in the execution of a works
« contract in Delhi, means such amount as is
atrived at by deducting from the amount of
valuable considevation paid or payble to a
person for execution of such works contract,
the amount ‘representing labour and service
charges for such execution;
{1) “taxable turnover" means such turnover as is
arrived at after deducting from the turnover of
sales such as may be prescrived;,
(9): “tax means the tax payable ustder this Act and
includes a luswp sum amount by way of
composition payable in lieu of the amount of
tax; :
() “turnover of sale” means the aggregate of the
amount of sale price received or receivable by
a.dealer in respect of any transfer of property
in goods itvolved in the execution of any works
contract whether executed fully or partly during
any period;
(u) “works contract" includes any agreement for
carrying out for cash or for deferred payment
or for any valuable consideration, the building
construction, manufacture, processing,
fabrication, erection, installation, fiting oul,
improvement, sepair or commissioning of any
movable or immovable property;
() “your? mean’ the financial year,
Q) All words aad experssion used and not defined
in this Act but defined in the Delhi Sales Tax Act, 1975
tshall have the meanings assigned-to them in that Act.
: : CHAPTER HL
INCIDENCE AND LEVY OF TAK
3. Incidence of Tax.—(}} Every dealer whose
“jumovér of sales during the year immediately preceding
the commencement of this Act exceeds: the taxable
quantum, shall be liable to pay tax under this Act on his
(axable turnover of sales effected hy him on or after such
commencement.
(2) Every dealer to wham sub-section (1) does not
apply, shall, with’ effect from the date immediately
following (he day on which his tumover of 2) sales
calculated form the commencement of any.ycar first
exceeds, within such year, the taxable quantum, be liable
to pay tax under this Act on all sales effected by him
after that date.
(3) Ever dealer who becomes liable to pay tex under
this Act, shall continue to be so liable unti) his registration
certificate is duly canectled, und upon such cancellation
his flinbility to pay tax, otlier than lax already levied or
leviable, shall, until his turnover. of afl sales again first
exceeds the limit specified in sub-section (1), cease:
i
3 :
t
10
Provided that where the dealer becomes liable topay
tax again in the sdme year in Which he ceased to be liable
as aloresaid, ther in respect of such sales as take place
duving the period cGmmencing on the date of cessation of
liability (0 tax and, upto the time when his tumover ofall
sales does not exceed atch limit, no tax shall be payable.
(4) For the purpose of this Act “taxable quantum”
means five lakh rupees, .
4, Liability of Dealer——Surbject to the provisions —
of this Act and the rules made-thereunder, a tax shall be
levied on the taxable turnover of sales involving transfer
of property in goods in the execution of ‘the works contract
commenced or continued for execution on OF afier the
commencement of this Act, whether such contract was
entered into prior, subsequent to suchi commencement.
5. Levy of Tax.—{1) Same as provided in sub-
sections (2), (3), (4),'(5) and (6), every dealer shall file
return and pay tax under this Act for caclt year on his
taxable turnover of sales on transfer of property in goods
(whether as goods oF in some other form) involved in the
execution of works contract, in the manner as may be
prescribed at the rate of eight paise on every Tupec of his
uel turnover of sales. :
(2) Tax shall be paid at the rate of four paise, on
every rupees of his net turnover of sales pertaining to
declared goods, if the goods have not suffered tax earlier,
and not fax shall be payable-on the tmoyer.of sales
pertaining to declared goods, if such goods have suffered
tax enrtier under the Delhi Sales Tax Act and transferred
front the contractor to the contractee in the same form in
which they were purchased by the contractor.
(3) No tax shall be levied on the turnover eee
(ransfer of properly in goods, specified in the Thir
Schodule to the Delhi Sales Tax Act, involved in the
execution of works contract, if such goods are wansferred
{rom the contractor to the contractee-in the saine form in
which they were purchased by the contractor.
(2) No such tax shall be leviable on the turnoyer of
sales on transfer of property in goods, whether a5 goods
or in some-other form involved in the execution of works
contract, if such transfer from the contractor to the
contactee constitutes a sales in the course of Inter-State
trade or commesce under section 3 or a sale outside the
State under section 4 or a sale in the course of Import or
Export under section 5 of the Central Sales Tax Act, 1956.
(5) No tax shall be, payable under this section oa
thé turnover of sales relating 1a tue amoult paid toa sub-
contractor as consideration for the exccution of works
contract whether whally or partly subject to the production
of proof, as may be prescribed, that such sub-contractor is
a registered dealer liable to tax under the Act and that the
turnover of such amount is included in the return of
turnover filed by sueh sub-contractor and (ax thereupon
has been paid. ‘
DELHI GAZETTE : EXTRAORDINARY [Pane
(6) No tax shall be payable under this section zm
the amount representing the value of the goods suppl
to the contractor by the contractee, provided thar af
ownership of such goods remains with the contract
under the terms of the contract.
clause (q) of sub-section (1) of section 2, the contra
does not maintain proper accounts or the acco!
to be worthy of credence and the amount actually incwzedi
towards charges for iabour and other services and predaig
relating to supply of labour and services are 2H
ascertainable, such charges for labour and services @
sucli profit may, for the purposes of deductions,
determined on the basis of such percentage of the vei
of the works contract as may be prescribed ‘and diffee:
percentages may be prescribed for differenttypes of w
contract,
6. Composition of Tax.—(1) Subject to
conditions and in such circumstances as may
prescribed, the assessing authority of the area ma
the contract or the Lotal aggregate value of the conta
received or. receivable towards the execution of
contract, |
the umover relating to the amount paid to a sub-cono
as consideration for the execution of works co
whether wholly or party, subject to the production of
registred dealer ijable 10 tax/payment of composiz
tax under the Act as the ease may be, and thal the rumoxy
of such amounts is included in the retuen of turnaver.
by such sub-contractor and tax or the composition 2
case may be has been paid thereupon.
(3) Every dealer who clects to pay tax underif
section shail apply in the prescribed form to the ass
authority to be permitted to pay the amount of ta’
sub-section (I) and, on being so permitted, ix;
prescribed manner and form, shall pay the same. |
7. Deduction of Tax At Source.—(1) Every
other than Individual and Hindu undivided 7
responsiple for making payment to any dealer (herex
in this section referred to as “the contractor") for dis
of any liability on account of valuable consid
payable for the transfer of property in goods (whet
goods or in some other form) in pursuance of a com
shall, at the time of credit of such sum to the acco
the contractor or at the time of making such payez
the. contractor, either in cash or in any other
deduct an amount equal to two per cent from s
ie under this, Act <n account of total value of
contract.
1 Where, on 2b application being made by the
arin this behalf, the Commissioner is satisfied tat
4:5 contract involves both transfer of property in
ani Jabour and service, or involves only labour and
and accourdingly, justifies deduction of tax on a
Bet He suin in repect of the works contract or, as the
2... be, justifies no deduction of tax, he shall, after
tr the contractor 4 reasonable opportunity of being
cant him such cerlificate as may be appropriate:
Provided thal nothing in the said certificate shal]
= tae assessment of the sales tax fiabifiry of the
scior under this Act:
ovided further that where arly deduction has been
Spy a comractar front the payments madee his sub-
actor in accordance sith sub-section (3) the amounts
payments shall be deducted from the.amount on
deduction is fo be made under this sub-section
‘0 production af acertificate as prescribed in sub-
5) ofthis section.
43) Any contractor responsible for making any
¢ or discharge of any liabitity to any sub-
Bicoctor, i pursuance of a contract with the sub-
Erector, for the transfer of property in goods (whether
“ods of in some other form) involved in the execution,
aze wholly oF in part, or the work underlaken by the
yall, at the tinie of such paymentor discharge,
Bech of by cheque or draft or any other mode, deduct
Eemount equal fo two per cent of such payment or
SSparge, purporting to be part or full amouirit oF the tax
ste under this Act on such tota} value of transfer
the bill or invoices saised by, (he sub-contractor as
Provided that ne ducuction under this sub-section
be made on the amount on which deduction has
Sfendv bean made under sub-section (#) or sub-section
J exbjece (o production of @ certificate as prescribed in
ction (5) of this section.
(4) The amount duducted under sub-section (1) or
cection (2) or sub-section (3) shall be deposited into
Govecnment treasury by the person making such
lion befure the expiry of fifteen days following, the
hich such deduction is made jn the manner as
th in wl
, be prescribed.
(5) The person making such deduction under sub-
fon (1) or sub-section (2) ar sub-section (3) shall, at
nave of payment or discharge, furnish to the deater
n whose bills or mvaices such deduction is made a
Fificate as may be prescribed in respect of the amount
ructed, the rafe at which it has been deducted and the
s of deposit into the treasury.
(6) Any duduction ‘made in accordance with the
pravisious of this section and credited into the Government
treasury shall be treated as payment of tax on hebalfof the
person from whose bills or invoices the deduction has been
made, and credit shall be given lo him for the aniount so.
deducted on the production of the certificate, referrect to
in sub-section (S) above, in the assessment made for the
relevant assessinent year.
(7) If any person as is referred to in sub-section (1)
or sub-section (2) or sub-section (3) fails to make the
- deduction or, after deducting fails to deposit the aniount
so deducted as required by sub-section (4), the assessing,
authority may, after giving to sch person an opportunity
of being heard, by order in writing, direct that sucht person
shall pay, by way of penalty, a sum not exceeding twice
the amount deductible under this section besides tax
duductible but not.so deducted and, if deducted, not so
déposited inta the Government treasury.
(8) Without prejudice to the provisions of sub-section
2), if any person fails tomake deduction, or, after deducting.
fails to deposit the amount so deducted, he shall be Jiable
fo pay simple interest at the rate of hwo per cent per month
on the amount deductible under this section but not so
deducted and, if deducted, not so deposited from the date
‘on which such amount was deductible to the date on which
such payment is actually deposited,
(9) Where the amount has ot been deposited after
dediiction, such amatnt together with interest and penalty
referred ta in sub-section’(7) and sulv-section (8) shall’be
a charge upon all the assets of the person concerned and
recoverable as arrears of land revenue.
CHAPTER II
TAX CLEARANCE CERTIFICATE AND
ACCOUNTS
8. Tax Clearance Certifieate—(1) Notwith-
standing anything contained in any other law for the time
being in force, io person shall enter into any works
contract-with any dealer for execution by him of such
works contract and shall make payment to such dealer
for execution of works contract, unless the Commissioner
certifies in the prescribed manner that such dealer-—
(i) has no liability to pay tax, interest, penalty or
‘any amount due or has not defaulted in
fusnishing any return or returns together with
the receipted challan or challans showing
payinent of all tax payable under this Act,
(ii) has not defaulted.in making payment of tax
otherwise payable by or due from tim under
this Act;
(iii) has made satisfactory provision for securing
the payment of tax by furnishing bank
guarantee in favour of the Commissioner or
otherwise, as the case may be;
2 pie is DG
(iv) tas made an underiaking ior getting himself
registered as dealer observing and complying
provisions of this Act, if the contractor has
started the business of wansfer of property in
goods involved in exccution of works combact
for first time in Delhi.
prescribed form, the Commissionér, after making such
enquiry as he deems ft aud proper, is satisfied and issues
a certificate in the prescribed form to the effectthat such
dealer is not Kable to pay tax under section 5 or that he
has paid tax payable by, or due from him under that
seetion, or has undertaken to register itselfand ta comply
the provisions of the Act and the Rules, payment may,
notwilhstanding anything contained in sub-section dh),
be made to such dealer for execution by hin of a works
contact referred in section 5 on production by his of
such certificate of the Commissioner.
(3) The application for the certificaterequired under
stih-section (1) shall be made by the contractor or dealer
to the Commissioner and shal! be in such form and shall
contain such paniculars as may be prescribed.
{2) Information to be furnished for awarding a
works contract.—Any persan catering into any contract’
letter of intent with any contractor fot transfer of property
in goods (whether as goods, or in some other form)
involved in the execution of works contract shall furnish
within fifteen daysfrom the date of signing of the contract’
lever of intent such informnation as may be preseribedl.to
the assessing: authority under whose jurisdiction the
contraztar's place of business issituated. Failuce t0 do so,
shall entail a penalty not exceeding five hundred rupees
per day of default after affording such persona reasonable
opporunity of being heard.
10, Accoutnts—(1) Fvery dealer liable to pay tax
under this Act, shall keep at his place of business @ Tuc
gecount in the mamier and form.as may be prescribed.
(2) All other provisions relating 16 accounts,
inspection, senrch and seizure as preserited in ‘Delhi Sales
‘fax Act shall apply mutatis mutandis. Wie
CHAPTER TV
REGISTRATION, REFURNS AND PAYMENT OF
TAX
11, Registration.—{1) No dealer shall, while being
liable to pay tax under this Act, execute or continue to
execule a works contract, unless: he possesses a valid
certificate of registration as provided by-this Act: i:
Provider that it shall be lawful for the dealer to
execute or continue to execute a warks cottradl ifthe dealer
has applied for registration within the prescribed time.
(2) Every dealer required to possess acertificate of
registration shall apply in sueh manner and to such
authority as may be prescribed.
(2) Wheré on application made by a dealer in the ©
XTRAORDINARY _ [Pax
(3) The provisions of section 18 of the Deily
Tex Act and Rules framed thereunder os regards secs
Shall apply to a dealer under this Act motatis mung
(A) Af the aytherity, after such wquicy es ut od
fit, is satisfied that an application for registration
order, it shall register the applicant und issue to
cenificate af registration in the prescribed form,
(5) The authocity may, after considerin:
time, the certificate of registration.” s
(6) ifany person, upon an application made b:
has been registered as a dealer, and thereafter it is fo
that he ought not to have been so registered unde
provisions of this section, he shall be {iable 10 pay
his sales mad¢ from the date on which his registr:
certificate (ook affect until it is cancelled, notwithstar
that he may not be liable-to pay tax under section
(7) Where a registered cealer discontinues, tra
or otherwise disposes of his activity ofexecution of w
contract or the carnover of sales of a registered di
has, during any year, not exceeded the Jimils specifi
section 3 and on an application made (or cancellations
his registration certificate, the prescribed authority
cancel .the registration with effect fram such date
inny fix in accordance with the mites. ‘
(8) Where ihe Commissianer is satisfied that
registered dealer has discontinued, transferred &
olltenvise disposed of the activity of execution of weal
contract and the dealer has failed to apply under ss
section (6) for cancellation of registration,
Commissioner may, afier giving the dealer a reasons
opportunily of being lieard, cancet the registration ¥
effect from such date as he may Fix to be the date
which the said activity has been discontinued, transfé
or otherwise disposed of, as the case may be: 3
Provided that the cancellation of certificate &
xegistration on an application of the deales or otherwe
shall not affect the liability of the dealer to pay the
(including any interest and penalty) due for any perk
upto the date of cancellation whether suct lax (inclu
any interest and penalty) is assessed before the date
cancellation but remains unpaid, or is assessed there: :
12. Returns, payment of tax and interest.—E
dealer registered under this Act shal} [ite retums and mca
payment of tax and interest in the mannec.and form:
may be prescribed. j
CHAPTER V
INSPECTION, SEARCH, SUIZURE AND AN
EVASION PROVISIONS
13. Power of entry, inspection and seizure
accounts and goods.—(]) An assessing authorily or
officer net below the rank of Inspector, authorised by
Commissioner in this behalf with such conditions axa
DELHI] GAZETTE : EXTRAORDINARY 3
may, be specified by che Commissioner.
power
inspect avs
y the place of business of a
ny other place where it is believed
such authority or offtcer that business is
meing done or accounts are being kept by such
dealer;
qo direct such dealce to produce eccounts
activities for examinations;
9 inspect, the goods in the possession of the
Gealer ot in the posession of any bady else an
behalf of such dealer, wherever such gaods are.
pinced;
y make search of such place including the
search of the gerson found there, where
concealment of facts. relating to business is
suspected: z
‘o brealc open the doors of any premises or to
Sseeak open ery almirah, box, receptacle in
which any g90ds, accounts, registers or
documents of the dealer are suspected to be
kept, but access Co such prem ises, almirah, box
or receptacle is denice
to record the statement ofthe dealer or his
from any record and to put identification marks
on accounts, registers or documents and on any
door, almirali, box or receptacle,
Explaiation—(1), There shall be a presumption
ect of goods, accounts registers or documents,
“ere found atany place af business of a deal er during
spection oF search that they relate to his business
Wats the contrary is proved by fim.
{2) The power under clauses (d) and (e) of sub-
on (4) shalt be exercised by the Inspector in the
ence of any authority not below the rank of assistant
sax officer.
3). Where any accounts, registers or documents are
Me stsced before aay assessing authority or any officer
below the rank of assistant sales tax officer in any
Eececding onder she Act such authority or-officer may,
saagans to be recorded in writing, impound and retain
avin its custody fora pertod nat exceeding six months,
hall give the dealer or any other person who has
EdJuced such accounts, registers or documents a receipt
Be the sane.
a: * (dy Whereas atthe time of inspeetion, the assessing
E yor any officer not below the rank of assistant
45 tax officer authorised by the Commissioner in this
alF has reason ¢o suspect that the dealer is attempting
avoid or evade tax or is concealing his tax liabiJity in
mainer, it may, for rezsons to be recorded in writing
06)99-4
~ ragisters and documents zelating to his business °
manager, ageat or servant or to lake extracts _
seize such accounts, registers ar documents of the dealer
as it may consider necessary and shall give the dealer, or
any olher person form whose custady such accounts,
registers or documents are scized a receipt for the same,
aud may retain the same in its custody for examination,
enquiry, prosceution or other legal action for a period
not exceeding six months.
(5} The accaunts, registers or documents impounded
under sub-section (2) or seized under sub-section (4) cauld
be retained even beyond a period of six months and \pto
a maximum period of two years from the date of
impounding or seizure, as the case may be, by such
authority or officer, after having obtained permission in
writing of the Commissioner or the Deputy Commissioner
authorised by the Commissioner.
(6} The assessing authority or any other officer not
below the rank of assistant sales tax officer authorised by
the Commissioner under sub-section (4) may seize any
goods liable ta tax, which are found in the possession of
a dealer or in the possession of any body else on behalf
of such dealer and which are not accounted for in his
accounts, registers or doctiments maintained in the course
of his business; and a list of gaods so seized shall be
prepared by sich authority or officer and a copy thereof
shall be given to the dealeror any other person from whase
custody such goods are seized.
(7) Where itis not feasible io seize the accoulits,
vegistess or documents nnder sub-section (4) or the goods
under sub-section (6), the assessing authority orthe officer
concericd may serve on the owner or the person who is
in immediate possession o; control thereof an order that
he shallnot remove, part with or athenvise deal with them
except with the previous permission of such authority or
officer, which may, afier serving such order, take such
steps as.may be decmed necessary under the
circumstances.
(8) The assessing authority of the officer referred
to in sub-section (6) may, after having given the dealer
an opportunity of being heard and after having held such
futher enquiry as it may consider fit, impose on him, for
the possession of goods not accounted for, whether seized
of noturder sut-section (6), a penalcy equalte the amount
of five times of the tax leviable on such goods or thirty
percent of the value of such goods, whichever is less,
and such authority or.olfcer may release the goods, if
scized, on payment of the penalty impased or on
furnishing such security for the payment thereof as it may
consider necessary.
(9) The asessing authority ar other officer as referred
to in sub-section (4), may require any person :—
fa) Who teansports of holds in custody any goods
of a dealer, to give any information in his
possession in sespect of such goads or to allow
inspection thereof, as the case may be; and
14 DELI} GAZETTE | EXTRAORDINARY __ (Paarl
~~" ¢y) whe maintains or has in his possession any
4 accounts, registered or documents relating (0
the business of a dealer, to produce such
accaunts, registers ordocuments for inspection.
}4, Prosecution and Penalties under the Act—
(1) Wheré any person— :
(a) liable to be registered under the Act fails to
register bimself; or
(b) fails to file return or-pay tax according to such
return within the time stipulated alongwith
. interest knowingly prepares or produces false
accounts, registers ordocuments, o: knowingly
fuimishes false returns in telation to his business,
Gt ntakes a false disclosure or averment in any
statement required (0 be recorded or in any
declaration required 10 be Gitled under this Act
or the rules; or
(o) fraudulently avoids orevades tax or deliberately
conceals his tax léability in any manner, or
(@) Tails to pay the amount of any dentand zotice
and a period of not Jess tan six months has
elapsed since the receipt of te demand notice
by him; or 1
Explamation:—An offence uoder this clause
shall be deemed to bea continuing offence until
full payment is made,
(e) deliberately disregards a notice of demand; or
(Q fails to make deduction of taxat source or, after
+ deducting fails @ deposit amount so deducted
ag required under section 6;
(@) prevents or obstructs in any manner the
competent officerunder the Act, toenter, juspect
where the goods or the accounts, registers and.
documents are believed to be kept, ar pravenis
or obstructs such officer to seize the geads or
he agcounts, registers und documents; or
(h) enters into works contrat with any contractor
withaur oblaining from the contractor a-tax
clearance certificate under section 7 of the Act;
is 10 furnish information as réquired under
quetion B of the Act;
_Mhils to maintain vegounes in de mannee as
required under section 10 of the'Act;
(k) aids or abéts any pétson in the comnuissian of
any such offence ax aforesaid;
‘on a complanit being made’ against such person by tic
assessing aulltority of the grea or any.atier competent
afiicer having obtained sanction from the Depuiy
Conmmissione" having jurisdiction, shall on conviction by
a Merropolitan Magistyare, having jurisdiction, be
punishable with simple imprisonment for a term which
inay, extend:to six, nowths and with fine not exceeding
cupees twenty thousand,
and search the business place or any ollterplace ~
(2) Where an offence under this section
committed with regard to a business, every persuc. wa
was responsible for the conduct of the business atthe
when the offence was commilied or who was answers!
fos legal lapse in any manner by his action or omis:Samg
shail be liable 1o be praceeded against and punished unde
this section, a
(3) Without prejudice to the provisions conta
in sub-section (2), where an offence under this section's
committed by a firm or n company and ic is found
the offence has been committed with the consent si
.connivanee of or is attributable to any neglect. on sre
part of any partner of the Sire, or Chairman-Cumy
Managing Director, Executive Director, Director of aa
Company, such Partner, Chairman-Cuny-Mani
Oirector, Managing Director, Executive Director ar
Director, shall be liable to be proceeded against anti
punished under this section :
(4) Any proceeding under this Act includins =e
progecding of assessment, renssessment, rectification &
recovery olber than the praceeding for imposition
penalty, sholl br carred an without prejudice to su
prosecution under tis section, a
(5) Ifa dealer fails without reasonable cause 3B]
comply with any of the provisions of this Act ar the ral
made thereunder, shall, if no other penalty is proving
under this Act for such contravention or failure, fe Hie
10 imposition of a penalty, not exceeding rupees werd
thousand and where sirch contravention or failure %
continuing one, to 9 daily penalty not exceeding rupess
five hundred during the period of the continuance of the}
contravention or faifure provided that no such penarge
shall be imposed without affording the dealer a
opportunity of Being heard, ‘ 9
18.Investigntion of offeucés.—-(1) Subject to soz
conditions as may be prescribed, the Conimissioner may}
authorise either generally or in respect of a particurm|
case oF class af cases, any officer not below dic rank «iy
an assistant sales ax officer lo investigate all or any.
the offences ponishable under this Act
2) Every oilicer so authorised shal, in the conan
of such investigation, exercise afl powers conferred
the Code of Criminal Pracedure, 1973 (2 of 1974) upam
an officer- in-charge ofa police station for the investigesi
of a cognizable offence, 3
CHAPTER VI
Certain Provisions of-the Delhi Sales Taxt Act
Applicable
16, Authorities ugder the Delhi Sales ‘Tay
empowered to assess; réassuss, ele. fax under
Act—(1) Subject to the Aber provisions of this Asi
the rules made thereunder, the authorities for the tug
being empowiered to assess, reassess, collect and enioes
payment of any tax under the Delhi Sales Tax Act ass:
DELHI] GAZETTE : EXTRAORDINARY 15
searsess, collect and enforce payment of tax including
Fac; interest or penalty payable by a dealer under this Act
Hae i the tax or interest a1 penalty payalsle by sucha dealer
Sander this Act isa (ax ov interest arpenaity payable under
“ga Deli Sales Tax Act and for this purpose they may
Sexercizeall arnny of the powers they have under the Delhi
E Sues Tax Act, and the provisions of the Delhi Salas Tax
AXE, reiting lo rewums, notices, assessment, re-assessinent,
ication, collection, registration of any dealer tiable
i oay tax under this Act, imposition of he tax liability of
Far firm of Hindu undivided family 10 pay 1ax in the event
he dissolution af swelt firm or partition of such family,
fal mode of recavery of lax, appeals, revisions,
Ereterericus, refunds Gnes, penalties, charging or payment
d the Ireatment of documents furnished by
(2) All the provisions refatinig to offences and
Hceaalties (including provisions relating to penslcy in Siew
€ grosecution foran offence or in addition to the penalties
ighnsent for an offence) of the Dejhi Sales Tak
“gt shall mutatis mulandis, apply an relation to the
Jpecosgmnenn, re-nssessment, collection and the enforcement
é¢ payinenl of the tax required to be collected under this
rin relation to any process connected with such
sment, re-nssessment. collection or reforcement of
‘Gasmont as if the tax payable under this Act were the
tas payable under the Delhi Saics Tax Act. *
Be CHAPTER VIL
Miscellanious and Rules
12, Power fo make mules —(1) The Government
make mifes generally t0 carry out dhe purposes of
is Act
(2) In particular and without. prejudice to the
<acvality of the Faregaing power, such rules may be made
vide far all or any of the matiers expressly required
He allowed by this Act to be preseribed by rules
MG) inmaking any cules the Gaverument may direct
es: 9 breach thereof shall be punishable with fine not
eceevling twenty thousand rupees, and wlien the offence
EE: contiming ons, with daily fine nor exceeding five
adred rupees during the contiquance of such offence.
(1) Rules made under this section shall be subject
Baa: che condition of previous publication:
it Provided that if the Government is satisfied that
ercumstances so exist which render It necessary to take
Hirocnediate action, it may dispense with the condition of ‘ious publication of any rules to be made tnder this
($) Every culemade under this sectionshall be laid,
“25 sown as may We alter HAS: spate, nelore the Leglaive
aridy WDE ihe as Wa SeSTheN LOT BACKALETOS,
qhinwy days which may be comprised in ene session or
Bin wo successive sesstons, and if, ‘before the expiry of
Tinted by the Manager, Govt. of India Press, Hing Koad, Mayap'
tnd Published by the Contrcliet of
the session’in which iLis $0 laid or the session immediately
following, the Legislative Assembly agrees in making any
modification in the rule or the Legislative Assembly agrecs
that the rule should not be made and notifies such dec
in te Official Gazette, the rule shall form te date of
publication of such notification have effect only in sucks
hodified form or be of no effect, as the case may be; so.
however, iat any such modification or anquiment shill
be withoutprejudicc to the validity of onything previonsty
foac or omitted to be done wader that rate,
18, Power to remove difficuky:—-If any difficulty
arises in giving effect to the provisions of this Act, the
Government inay, by order published in the official
Guzzelte, inake such provisions, not inconsistent with the
provisions of this Act as appear to it lo he necessnyy or
expedient for removing the difficulty:
Provided that no such arder'shall be made after the
expiry ofa period oFtwo years from the date of publication
of this Act in the official Gazette
RT,L, DY SOUZA, Under Secy.
Werte fra Cum A) & Fira 2 (a)
Sater a se ea EL TET TH
powers conferred under rules 2
Treasury Rules (Vol-I) the LY Governor, of National
from vime to time,
Wy exper and tn the name of the LA
the Waionh Capital Vertinghy of DENG
WX. GUPTA, Dy, Sey
ew Danicsones
cao, Delhi 11954.